Is Fortescue Future Industries listed on the ASX?

Here’s how to get a slice of Fortescue Future Industries on the ASX.

| More on:
A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.

Image source: Getty Images

Fortescue Future Industries is the talk of the ASX today, but market watchers may be disappointed to learn they can’t invest directly into the company.

There is a way to get a slice of Fortescue Future Industries in your portfolio, however. It involves buying shares in the parent company, Fortescue Metals Group Limited (ASX: FMG), which is trading more than 3% higher at the time of writing.

But first, let’s take a closer look at the future.

What is Fortescue Future Industries?

According to Fortescue Metals, its new subsidiary Fortescue Future Industries is the face of its hydrogen-powered ambitions and a key component in its plan to reach carbon neutrality by 2030.

Fortescue Future is working to establish a portfolio of renewable hydrogen and ammonia operations and aims to be a leader in the world’s renewable hydrogen industry.

Further, it plans to produce 15 million tonnes of green hydrogen each year by 2030. The hope is that green hydrogen will be the most traded seaborne energy commodity in the world by then.

How to invest in Fortescue Future Industries on the ASX

While investors can’t buy into Fortescue Future Industries directly, a holding in Fortescue Metals — the world’s fourth largest iron ore producer — will grant them some exposure to the business.

This includes Fortescue Future’s newly announced Global Green Energy Manufacturing Centre.

According to a release out today, the first stage of the Global Green Energy Manufacturing Centre will see the development of Australia’s first multi-gigawatt-scale electrolyser factory. Electrolysers can remove hydrogen from water and, if run on renewable energy, can produce ‘green’ hydrogen – a zero-carbon fuel source.

It appears investors may be interested in Fortescue Future Industries’ new hydrogen investment. The Fortescue Metal share price is up 3.65% trading at $14.77 at the time of writing.

Should you invest $1,000 in Fortescue Metals right now?

Before you consider Fortescue Metals , you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Fortescue Metals wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares